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Math Help - Geometric increasing annuity. Just need solution verified

  1. #1
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    Geometric increasing annuity. Just need solution verified

    Deposits are made at the beginning of every month into a fund earning a nominal annual rate of 6% convertible monthly. The first deposit is 100 and deposit increase 2% every year.
    Calculate the fund balance at the end of 10 years.


    Okay. Here's my solution

    (1.06167^{9})(100)\ddot{s}_{0.005,12}\left(\frac{1-(\frac{1.02}{1.06167})^{10}}{1-\frac{1.02}{1.06167}}\right)=17,859.22

    Can someone verify this answer? Also, if there's a nicer, easier, or faster way to solve the problem I'd be interested in seeing it. Thanks
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  2. #2
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    Re: Geometric increasing annuity. Just need solution verified

    Keerect...and nicely done! I'm sure there's no easier way...

    Btw, an annual non-increasing deposit of 1266.21 will achieve same ending balance.
    Thanks from downthesun01
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